Recycling fees for cars, light commercial vehicles and buses imported into Russia for resale during the year are indexed starting August 1, 2023. This adjustment was announced by the Ministry of Industry and Trade on Friday, July 7.
The scrap rate is expected to rise by an average of 1.7 to 3.7 times for passenger cars, 2.5 to 3.4 times for light commercial vehicles, and 1.7 times for trucks. Bus disposal fees will increase by 2.2 to 4.8 times, with electric buses experiencing an even larger jump at 8.7 times.
Imports for personal use fall under a different treatment. Vehicles with engines up to 3 liters will continue to attract a reduced fee of 3.4 thousand rubles for cars up to three years old, and 5.2 thousand rubles for vehicles older than three years, as announced by the department.
Citizens, and legal entities alike, who import a car after August 1, 2023 and plan to resell it within a year will be required to pay the full disposal rate. Details on whether the fee is paid in full or in part will be published on the official site of JSC Electronic Passport.
The ministry also noted that after the full disposal payment is made, the vehicle may be registered to a new owner.
Those who import more than one car per year, starting with the second vehicle, or foreign cars with engines larger than 3 liters, will also be liable for the full scrap fee. This information is reported by TASS.
The disposal fee is a one-time charge for each unit manufactured or imported domestically. It is framed as an environmental levy intended to offset future disposal costs for equipment.
Russia has collected this fee since September 2012. Initially applied only to importers, the charge began to apply to Russian automakers in 2014. Industrial subsidies continue to support domestic producers to offset the payment, as noted by Vedemosti.
The Ministry of Industry and Trade believes that the wage increases will not drive up the cost of domestically produced cars because state support measures are in place.
The ministry stated that the provisions of the approved resolution will also boost the investment appeal of joint industrial projects and the localization of automobile production in Russia for partners from friendly nations.
An additional channel to replenish the budget
The rise in the recycling fee is seen as expanding opportunities for Russian manufacturers. Konstantin Dolgov, Deputy Chairman of the Economic Policy Committee of the Federation Council, commented that this step will widen the domestic market for Russian auto products. He noted that the measure does not block imports but serves as a prudent, protective channel to fund the budget. This view is reported by SenatInform.
Several Russian automakers expressed support for the increase. AvtoVAZ, Sollers, KamAZ and Moskvich highlighted that higher waste collection supports investment in national auto and auto parts production. AvtoVAZ’s press service underscored this point, along with remarks from KamAZ about the market’s harmonization and the need for market regulation measures, while ensuring KamAZ truck prices remain unchanged. Autonews.ru is cited for these statements.
Industry observers and auto dealers interviewed by socialbites.ca forecast a price rise of 10 to 12 percent in the next two months, with the ruble’s exchange rate movements potentially impacting foreign car imports through parallel channels.